3 Million Texas Workers Are Paid Less Than Minimum Wage

Wage theft is an issue that is plaguing workers across the United States, and Texas is no exception. This silent epidemic is affecting millions of employees, and it's a problem that is not going away anytime soon.

In this blog post, we'll be taking a closer look at the issue of wage theft in Texas. From underpaid overtime to mandatory work off the clock, wage theft takes on many different forms, and it's essential that workers are informed and empowered to stand up for their rights.

What Is Wage Theft?

Wage theft occurs when an employer deprives workers of their rightful wages or benefits by underpaying them, failing to pay overtime, or not paying the mandated minimum wage. This often results in financial and emotional stress for the affected workers and can undermine their ability to provide for themselves and their families.

Signs of wage theft can include:

Incorrect paychecks
Having to do work even while clocked out
Purchasing something for your employer and not receiving reimbursement
Not receiving your final paycheck after leaving your job

Wage Theft in Texas

A recent academic study in Texas has highlighted a worrying stat: three million workers are being paid less than the state minimum wage. What's more, employers are turning a blind eye to the $99 million in judgments issued by the Texas Workforce Commission.

This is a concerning trend that affects the livelihoods of hard-working individuals and underscores the importance of stronger labor laws and increased oversight to ensure workers receive fair compensation.

Employees Most Affected by Wage Theft

Furthermore, another study by Rutgers University's Workplace Justice Lab@RU has shed light on the statistics and trends of wage theft in Texas.

Wage theft statistics revealed that:

Nearly $99 million in wages were ordered across more than 57,000 cases from 2010 to 2020. However, over $78 million, or 80% of wages ordered, have yet to be received by workers.
Over 39,000 claimants have not seen any portion of their ordered wages yet nearly 17,000 of these claims are marked as being “closed” and “paid in full.”

The study found that certain occupations were disproportionately affected by wage theft.

Workers most affected by wage theft included:

Waiters and waitresses
Teacher assistants
Maids and housekeepers
Childcare workers
Grounds maintenance workers
Personal and home care aids
Cooks
Janitors and building cleaners
Nursing, psychiatric, and home health aides
Food preparation workers

While data does not reveal why certain occupations have more violations, data shows that there are higher violation rates among industries that employ women, people of color, and immigrant workers. This pattern suggests potential discrimination and occupational segregation as contributing factors to the wage theft issue.

Meanwhile, industries with lower violation rates tend to employ more men and historically have been more unionized. The study's findings highlight the importance of addressing wage theft and promoting fair pay practices for all workers.

Why Employees Don't File Claims

The problem of wage theft is a pervasive one, affecting countless workers across various industries. Though official statistics may provide some insight into the extent of the issue, it's important to note that many cases go unreported. As a result, the true scale of wage theft is difficult to determine.

One factor contributing to underreporting is worker reluctance to come forward. Fear of scrutiny or retaliation can prevent employees from filing claims, leaving them with no recourse for recovering stolen wages.

How Employers Avoid Collections Actions

Employers who engage in wage theft are not being held accountable for their actions. Commission spokeswoman Angela Woellner explains that there are circumstances that prevent recovery of unpaid wages.

For example, some employers are able to hide bank accounts and avoid liens and levies, while others can simply file for bankruptcy or walk away from their business, making collection efforts futile.

The article continues to highlight the importance of addressing and resolving the country’s wage theft issue. If failing to pay parking tickets can result in an arrest warrant and limitations on everyday activities, the same should be true for employers who steal from their employees. Business loans, bank accounts, and bankruptcies should all be inaccessible for those who engage in wage theft.

What to Do if You Are Experiencing Wage Theft

Wage theft is a prevalent issue in the state, and it is important to know what to do should you discover you are a victim.

Steps to take include:

Speak with your employer to determine whether the discrepancy in your check is due to error or wage theft.
Keep records of your conversations with your employers as well as your paycheck discrepancies. If you discover that you are a victim of wage theft, there are further actions you can take.
Submit a wage claim with the Texas Workforce Commission within the 180 days of the date that your wages were due for payment.
File a complaint with the U.S. Department of Labor’s Wage and Hour Division.
Work with an employment attorney to help you navigate this issue and protect your rights.

Wage theft is a serious issue in Texas that affects many hard-working individuals and families. It's essential to bring attention to this problem that could happen to anyone. If victims of wage theft don't receive the compensation they deserve, they could struggle to pay bills and support their families.

That's why our team at Shellist Lazarz Slobin offers our services to assist those affected by wage theft. Our skilled wage and hour attorneys can investigate your case and help you pursue the justice and compensation you deserve.

Don't hesitate to contact us if you or a loved one is a victim of wage theft. Call (713) 352-3433 or get in touch with us online.